economy
February 3, 2026
Private credit stocks plummet on concern about exposure to software industry disrupted by AI
Shares of stocks with significant private credit market exposure were diving on fears about exposure to the industries being disrupted by artificial intelligence, including software.
TL;DR
- Shares of Blue Owl, TPG, Ares Management, and KKR fell significantly due to concerns about AI disrupting software industries.
- Publicly traded software stocks have experienced a decline this year due to fears of AI impacting future growth and profit margins.
- Analysts estimate 25% to 35% of the private credit market is exposed to AI disruption risk.
- Alternative asset managers face impacts on both their private equity and private credit sides.
- Default rates for private credit firms could rise to 13% if AI triggers significant disruption, compared to 4% for high yield corporate bonds.
- Venture capital confidence in legacy enterprise SaaS business models has weakened considerably.
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